In the song, Walsh satirically reflects on the antics and excesses of the era's rock stars, with nods to drummer Keith Moon of the Who and others: "I live in hotels, tear out the walls/I have accountants pay for it all", and "My Maserati[1] does one-eighty-five/I lost my license, now I don't drive", based on his own experience.

The 1979 Rolling Stone Record Guide called it "riotous", and "(maybe) the most important statement on rock stardom anyone has made in the late Seventies".

[citation needed] Made after Walsh had joined the Eagles, "Life's Been Good" was incorporated into that group's concert repertoire, appearing in shows at the time as well as reunion tours.

[citation needed] In a 2012 concert at the Troubadour in West Hollywood, California, Walsh explained that the song's lyrics were largely true.

He purchased a home in Santa Barbara, California, shortly before he joined the Eagles, then spent the next two years touring or recording and mostly living in hotels.